Friday, December 2, 2011

Resistance reached?

Another gap up (no surprise, getting used to it ;-)) this morning. After a small pullback, we soon rose to 126.50 in SPY. This level was big support mid-June and, after this weeks huge run, could now become resistance. Anyway, we reversed after touching 126.50. Yesterday's high stopped the fall for a while and then the afternoon highs were next to hold as support.

What followed was a slow grind up, which started looking more and more like a bearflag. And indeed, when the flag broke, down we went again. But this time it was a slow grind for most of the day. Just before the close however, selling accelerated. We closed at the lows, quite a bearish candle on the daily chart, but on low volume.

5m-chart SPY:

Daily charts DIA, QQQ and SMH:

Gold, silver not moving much and oil was up almost 1% to 101. Copper was outperforming, up about 2% at lunchtime and holding most of those gains into the close.
The euro on the other hand dropped quite a bit. Maybe that had something to do with the rumors that saving the euro(zone) would only be possible by printing money (remember QE and QE2, anyone?)